The cabinet of ministers on Wednesday (22) took note of a report submitted by the Minister of Ports and Shipping Arjuna Ranatunga to look into the possibility of constructing a naval dock yard at the Chinese-built Port.
The cabinet has given the nod to take steps to prepare streamlined plans in this connection and to undertake necessary feasibility studies.
The southern port was built during the previous regime of Mahinda Rajapaksa with a loan of US$ 316 million from Exim Bank of China. However, the port remains mostly unused except for a few transshipments of vehicle carrying vessels.
Earlier this year Minister Ranatunga said the Colombo Port is bearing the burden of expenditure of the Hambantota port.
He pointed out that total expenditure of Hambantota Harbor in 2012 amounted to 812 million rupees. However, the income during that year was 135 million rupees and the port incurred a loss of 678 million rupees in 2012. (Colombo Page)